DEPUTY COMMISSIONER OF INCOME TAX, AMRAVATI CIRCLE , AMRAVATI vs. M/S. AMRAVATI MERCHANT COOPRATIVE BANK LIMITED, AMRAVATI

This bunch of appeals preferred by the Revenue for the various assessment years mentioned in the caption emanates from the orders of Commissioner of Income Tax (Appeals). The assessee has preferred CO No.16/NAG/2017 against ITA No.68/NAG/2017.

The Ld. AR of the assessees submitted at the outset that the appeals of Revenue are liable to be dismissed on account of low tax effect in terms of recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)], dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 revising the 16 LT group of cases, Nagpur upward monetary limits for filing of appeals in Income Tax Cases before various Appellate Forums. The earlier CBDT Circular No.03/2019 dated 11.07.2018 fixed monetary limit for filing of appeals before the Tribunal at Rs.20 Lakhs. Such limit has been enhanced in the recent CBDT Circular dated 08.08.2019 from Rs.20 lakhs to Rs. 50 Lakhs. The Ld. AR of the assessee pointed that tax effect involved including surcharge and Cess in all the appeals is less than Rs.50 Lakhs.

The Ld. DR fairly admitted that in the present appeals by the Department tax effect is less than Rs.50 Lakhs.

Both sides heard. The Revenue is in appeal against the order of Ld. CIT(Appeals) in deleting the additions. Undisputedly, the tax effect involved in these appeals is less than the monetary limit prescribed by the recent CBDT Circular No.17/2019 [F No.279/Mise.142/2007-ITJ (Pt)] dated 08-08-2019 read with Circular No.3 of 2018 dated 11.07.2018 for filing of appeals before the Tribunal by the Department. The CBDT vide circular dated 08.08.2019 (supra.) has amended Para 3 of Circular No.3 of 2018 dated 11.07.2018 thereby enhancing monetary limit of tax effect from Rs.20 Lakhs to Rs.50 Lakhs for filing appeals by the Department before the Tribunal. Thus, without going into merit of the issues raised in the appeal, in view of the CBDT Circular (supra) the present appeals of the Revenue are dismissed on account of low tax effect. Since the appeals of Revenue are dismissed on account of low tax effect, CO filed by the assessee in CO No.16/NAG/2017 becomes infructuous and hence, the same is also dismissed.

Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for restoration of appeal, with the requisite material to 17 LT group of cases, Nagpur show that the appeal is protected by the exceptions prescribed in Para 10 of the Circular dated 11-07-2018 and its amendment dated 20-08-2018.

In the result, all the appeals of the Revenue and CO of concerned assessee are dismissed.